NYSE Specialists in electronic world???

R

RedDuke

I do not trade stocks, so know very little about NYSE. The question is when do NYSE specialists intervene in today's electronic world. The stocks are traded electronically where bids/asks are matched faster than human can. Do they only step in when either side liquidity dries up? Or when they want to push the market in either way?

Thanks,
redduke
 
Quote from RedDuke:

Well, that I kind know. But seriously, what is their purpose in today's electronic world?
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no purpose thats why these dinosaurs are being phased out.
 
The NYSE wont be around much longer, the floor of the NYSE will most likely close its doors in the next decade and move to the way of the nasdaq. Electronic systems are far superior to the Specialists on the nyse.
 
Idiots.......give solid answers or save your snarky comments for yourselves....so much hot air on elitetrader


The specialist is the market maker and he is always holding some form of position.

The specialist allows large blocks to be traded.....takes care of the opening market imbalance on the stock.....This gives the market a bit more control and if you understand the system you can take advantage of the system and be on the side of the specialist.

When trading volume is low the specialist will allow the autoex system to carry all the trades. There are some interesting articles on the matching process and how the book is swept for bids offers and price improvements on the NYSE website
 
The purpose of the specialist is to take the orderflow....look where your orders are at, and print 5k shars .01 in front of your order. Someone gets those orders before I have a chance to even see them.

You guys that cheer for electronic markets don't know what the hell you're talking about. Do you realize how much money these hedgefunds have invested in their infrastructure and trading models. HUNDREDS OF MILLIONS OF DOLLARS! Do you really think you're going to get an edge over them? Do you really think that your tradestation model will compare? Ain't happening!
When the specialist goes, you'll be dreaming about the good ol' days.
 
Quote from mschey:

The purpose of the specialist is to take the orderflow....look where your orders are at, and print 5k shars .01 in front of your order. Someone gets those orders before I have a chance to even see them.
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That is the essence of the problem with the specialist system, they know something before everyone else knows it. Even if it's only something like 15 seconds, they could still front run you all day long if they wanted to.

I'm not so sure that the benefit of the specialist system outweighs the downside. The market is speaking, and it doesn't look so good for them in most cases.
 
Quote from panzerman:

That is the essence of the problem with the specialist system, they know something before everyone else knows it. Even if it's only something like 15 seconds, they could still front run you all day long if they wanted to.

I'm not so sure that the benefit of the specialist system outweighs the downside. The market is speaking, and it doesn't look so good for them in most cases.
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Someone else always knows something before you....and the specialist is the least of your worries.
 
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